HRW wheat bids steady to weaker

08 Sep, 2006

Hard red winter wheat basis bids were steady to weaker on Thursday, with demand dropping off in some locations, particularly for high-protein wheat. Protein premiums paid for railcar wheat to and through Kansas City dropped off 2 cents a bushel for some higher-protein supplies.
Also in Hutchinson, Kansas, adjustments in spot competition there saw a sharply lower basis. In the country, farmers were focused on seeding the new crop and taking advantage of recent rain showers that have boosted soil moisture levels. More moisture is needed, but increasingly there is talk of wheat seedings rising with some producers shifting row crop acreage to wheat.
In export news Thursday, Tunisia bought 175,000 tonnes of soft wheat, with most of the wheat thought to be coming from the Black Sea region. South Korean flour millers bought 22,600 tonnes of US No 1 wheat for shipment between November 1-30. Japan was expected to buy 111,000 tonnes of wheat this week, including an offer to buy 50,000 tonnes from the United States.
The futures market at the Kansas City Board of Trade was expected to see mixed to lower trade on Thursday in an extension of Wednesday's technical pressure. The benchmark December wheat contract closed down 6 cents at $4.77-1/2 on Wednesday.

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